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Stock Alert: Oracle Shares Up 4% On Upbeat Q3

Oracle Corp. (ORCL) stock gained $1.75 or 4.40% in after-hours trading session on March 12, after the business software giant reported upbeat Q3 results. The stock has been trading in the range of $39.71 - $60.50 for the past one year, and closed Thursday's trade at $39.80, down $4.92 or 11.00%.

Redwood Shores, California-based Oracle reported third-quarter net income of $2.57 billion or $0.79 per share, down from last year's income of $2.75 billion or $0.76 per share. Adjusted earnings rose to $0.97 per share from $0.87 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.96 per share.

Revenues for the quarter grew 2% to $9.80 billion compared to last year's $9.61 billion. Analysts estimated revenue of $9.75 billion.

Oracle's cloud services and license support revenues rose 4% to $6.93 billion, while cloud license and On-Premise license revenues dropped 2% to $1.23 billion. Hardware revenues declined 6% to $857 million, while Services revenues slipped 1% to $778 million.

"We had an extremely strong quarter with Total Revenues growing 3% in constant currency," said Oracle CEO, Safra Catz. "Subscription revenues, made up of Cloud Services and License Support revenues, grew 5% in constant currency. These consistently growing and recurring subscription revenues now account for 71% of total company revenues, thus enabling a sequential increase in our operating margin, and double-digit non-GAAP Earnings Per Share growth in Q3."

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